In Shanghai, Kurt's inscribed poem (5)
I believe the answer is:
haiku
'poem' is the definition.
(haiku is a kind of poem)
'in shanghai kurt's inscribed' is the wordplay.
'in' says the answer is hidden in the clue.
'HAIKU' is hidden in the letters of 'shanghai kurt inscribed'.
(Other definitions for haiku that I've seen before include "Japanese three-line verse form" , "Japanese poem of seventeen syllables comprising three lines" , "Pithy lines" , "Epigrammatic verse" , "Stylised Japanese poem of 17 syllables" .)