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The recent flood of equity raisings has contributed to the downturn, with close to $10bn being raised in the last month as companies have attempted to restore their balance sheets while demand was strong.

The equity raisings have diluted future earnings. While investors were happy to buy the stock cheaply, the upside is limited because more shares on issue result in lower earnings per share.

This puts the spotlight on Greg Goodman's attempt to raise $1bn at above 40c a share. Goodman Group's stock price fell to 38c a share yesterday, valuing the company at just over $1bn.

While the company is still confident it will be able to raise the funds, it obviously helps if the share price is higher.

Goodman complicated things for himself by issuing options to Macquarie at 30c a share and Chinese Investment Corp at 40c as part of his plans to use the China investment as a springboard into further property development in the company.

The question for Goodman is whether he has left his run too late, with the recent equity rally apparently over.

Goodman Group's stock price hit a low of 13c in March, compared with its 52-week high of $3.55 a share