The world number 23 Indian went down 17-21 7-21 to Wang, world ranked 17, in the men's singles competition at the Yuan Shen Gymnasium.
Wang produced a flurry of net winners to take several points away from the Hyderabadi in a 34-minute contest.
The first game saw both players engage in a series of long rallies. But after the change of sides, Wang went on to extend his lead with Kashyap dropping his serve at regular intervals.
The Chinese took just one game-point to take the lead.
Kashyap could not get his act right in the second game and was left doing the catch up job as Wang closed the issue in his favour comfortably without being threatened much.
Wang completely dominated the second game as he got 21 of the 28 points played.
Kashyap will next play the USD 250,000 Hong Kong Open Super Series starting next Tuesday.
