KraneShares Semiconductor ETF Gains Exclusive Access to Chinese Chipmaker CXMT

2026-08-06 companies

New York, Thursday, 6 August 2026.
KraneShares’ KSTR ETF has become the sole US and UCITS-compliant fund directly holding shares in ChangXin Memory Technology following its massive IPO, where revenue surged 600% due to global AI demand.

Exclusive Direct Access to CXMT via KSTR ETF

On August 6, 2026, KraneShares announced that its China Semiconductor ETF (KSTR) has become the sole UCITS-compliant fund to offer direct ownership in ChangXin Memory Technology (CXMT) [1]. This strategic addition follows CXMT’s landmark initial public offering on China’s STAR Market, which occurred on July 27, 2026 [1][3]. For the US-listed share class, the addition was announced on August 4, 2026, with an initial portfolio weight of 1.97%, while the UCITS share class reflects a weight of 2.12% [1][3]. The difference in weighting between the UCITS and US share classes is calculated as 0.15 percent, reflecting slight structural variations in the fund’s deployment across regions [1][3]. This move provides international institutional investors and asset managers with unprecedented direct exposure to Mainland China’s domestic semiconductor supply chain amidst ongoing global tech competition [1].

KSTR utilizes its Qualified Foreign Institutional Investor (QFII) quota to hold CXMT shares directly, bypassing swaps or derivative instruments often used to mitigate counterparty risk [3][5]. This direct ownership structure is significant as it offers transparent exposure to the underlying company rather than synthetic replication [6]. As of August 5, 2026, KraneShares confirmed via social media channels that the holdings were updated to reflect this new inclusion, providing investors with direct exposure through the ETF structure [2][4]. The fund’s indicative net asset value (iNAV) remains accessible during trading hours via the London Stock Exchange, ensuring transparency for secondary market participants [1].

CXMT Market Position and Financial Surge

CXMT is recognized as China’s leading dynamic random-access memory (DRAM) manufacturer and Mainland China’s largest publicly listed company following its IPO [1][8]. By late 2025, the company held an estimated 7-8% global market share by capacity and shipments, positioning it as the world’s fourth-largest DRAM producer [1][3]. This rapid ascent places CXMT alongside industry giants such as Samsung and SK Hynix in the global semiconductor supply chain [6]. The company’s growth is largely attributed to AI-related demand for memory chips, aiming to reduce domestic reliance on foreign competitors [5].

Financially, CXMT has demonstrated explosive growth trajectories leading up to and following its public listing. First-half 2026 revenue is projected to exceed RMB 100 billion, marking a year-over-year increase of over 600% [1][3]. In the first quarter of 2026 alone, revenue increased by over 700% year-over-year, driven by the surge in AI infrastructure requirements [5]. Additionally, stock prices surged between 466% and 500% on its debut trading day, underscoring strong market confidence in its technological capabilities and market position [5].

Strategic Implications for the AI Supply Chain

Jonathan Krane, CEO of KraneShares, stated that CXMT is a testament to China’s growing importance in the global AI supply chain [1][3]. The company is currently recognized as a critical participant in the global AI semiconductor supply chain, with reports indicating potential supply negotiations with major technology firms such as Apple [1][3]. This integration highlights the shifting dynamics where Chinese manufacturers are becoming indispensable to global technology production despite geopolitical tensions [5].

The inclusion of CXMT in KSTR allows global clients unique access to one of China’s most important semiconductor companies through a regulated investment vehicle [1]. This access is particularly valuable given the complex compliance requirements stemming from existing US export controls and investment restrictions [5]. By navigating these regulations through the QFII pathway, the fund mitigates some regulatory friction while maintaining exposure to the innovation economy [1][6].

Risk Factors and Regulatory Landscape

Investors should note that the Fund is subject to risks including political, social, or economic instability in China, emerging market volatility, and currency fluctuations [1]. The investment landscape is characterized by complex compliance requirements stemming from existing US export controls, entity lists, and investment restrictions [5]. Additionally, there are risks associated with IPO investments and sector concentration, as the fund is non-diversified and focuses heavily on the semiconductor sector [3][8].

Furthermore, the Management Company retains the right to terminate marketing agreements for the Fund pursuant to Article 93a of Directive 2009/65/EC, adding a layer of structural risk for European investors [1]. Despite these risks, the fund continues to expand investor access to China’s innovation economy, balancing potential high returns with the inherent volatility of the region’s technology sector [1][3]. Ongoing geopolitical and regulatory risks remain a key consideration, including potential US-China semiconductor tension escalations and policy changes regarding foreign ownership [5].

Sources

Semiconductor Industry China DRAM