KraneShares' KSTR ETF Adds CXMT, First U.S.-Listed Fund with Direct China DRAM Exposure — Krane Funds Advisors, LLC (KraneShares)

Event summary

KraneShares' China Technology & Semiconductor ETF (KSTR) added ChangXin Memory Technology (CXMT) at a 1.97% initial weight, making it the only U.S.-listed ETF with direct ownership of CXMT shares.
CXMT listed on China's STAR Market on July 27, 2026, and is now the world's fourth-largest DRAM producer with an estimated 7-8% global market share as of late 2025.
KSTR gained access to CXMT through its Qualified Foreign Institutional Investor (QFII) quota, avoiding counterparty risk associated with derivative instruments.
CXMT's first-half 2026 revenue is expected to exceed RMB 100 billion, representing year-over-year growth of more than 600%.
Apple reportedly in negotiations to source memory chips from CXMT.

The big picture

KraneShares' addition of CXMT to KSTR underscores the growing importance of China's semiconductor sector in the global AI supply chain. As demand for memory chips surges, driven by artificial intelligence applications, CXMT has emerged as a critical player alongside industry leaders SK Hynix and Samsung. This move highlights the strategic value of direct ownership in Chinese tech companies, particularly those listed on the STAR Market, which is designed to foster innovation in advanced technologies.

What we're watching

Market Access Dynamics: How KSTR's direct ownership of CXMT will influence other U.S.-listed ETFs seeking exposure to China's semiconductor sector.
Regulatory Headwinds: Whether U.S.-China tensions could impact KSTR's ability to maintain or expand its holdings in Chinese tech companies.
Execution Risk: The pace at which CXMT can sustain its rapid revenue growth and increase its global market share amid intense competition from SK Hynix and Samsung.