A person in Yichang, Hubei province is browsing Tudou.com on Aug 6, 2010. Tudou Holdings Ltd on Wednesday issued shares on Nasdaq Stock Market.[Photo / Asianewsphoto]

NEW YORK - China's second-largest online video site Tudou Holdings Ltd on Wednesday issued shares on Nasdaq Stock Market, just one week after the markets underwent a huge turbulence following the downgrade of US credit rating.

Tudou sold 6 million American depositary receipts at $28 a share in its IPO, intending to raise nearly $180 million.

However, it opened 13 percent lower than its issuing price at $25 per share.

Tudou's CEO Gary Wang said this site is serving 40 percent of China's total online population monthly and the IPO is to raise funds for content acquisitions as bandwidth charges.

Founded in 2005, the Shanghai-based company is facing severe competition in online video business. It had a market share of 14 percent in online video advertising revenue in China at the end of the second quarter, down from 17 percent at the end of 2010.

While its rival-Youku, which was also listed in US market, had a market share of 23 percent.