KraneShares' KSTR ETF Adds Direct CXMT Stake via QFII Quota
Event summary
- KraneShares' China Technology & Semiconductor UCITS ETF (KSTR) added ChangXin Memory Technology (CXMT) as a direct holding at a 2.12% weight on August 3, 2026.
- KSTR is the only UCITS ETF with direct ownership of CXMT shares via its QFII quota, following CXMT's July 27, 2026 listing on China's STAR Market.
- CXMT is China’s leading DRAM manufacturer and the world’s fourth-largest by capacity, with a 7-8% global market share as of late 2025.
- CXMT’s first-half 2026 revenue is expected to exceed RMB 100 billion, up over 600% year-over-year.
The big picture
KraneShares' move underscores the growing importance of China’s semiconductor sector in the global AI supply chain. By securing direct ownership of CXMT, KSTR offers investors rare exposure to a critical player in DRAM manufacturing, positioning itself as a key vehicle for accessing China’s tech innovation. The inclusion highlights the strategic value of QFII quotas in navigating regulatory barriers to Chinese markets.
What we're watching
- Regulatory Access
- Whether KraneShares can sustain direct exposure to Chinese tech firms through its QFII quota amid geopolitical tensions.
- Market Positioning
- How CXMT’s inclusion in KSTR will impact investor demand for China-focused semiconductor ETFs.
- Execution Risk
- The pace at which CXMT can scale production to meet global AI-driven memory chip demand.
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