Kashyap, who had upset World No.4 Kenichi Tago of Japan, worked hard against Wang but finally went down 21-15 13-21 21-13 in one hour and five minutes.
Kashyap looked in good nick after he overcame China's Houwei Tian in a tough second-round game yesterday but the Hyderabad star could not match up to Wang's play in the long battle.
Other Indians in the fray are Saina Nehwal and Ashwini Ponappa, who has taken field in the mixed doubles draw with Vladimir Ivanov.