The former Commonwealth Games champion lost 10-21, 22-20, 13-21 to the Chinese rival in a contest that lasted one hour and 16 minutes.
Kashyap was returning from a shoulder injury he suffered during the Premier Badminton League (PBL) in January.
The only
other Indian in the fray, Harsheel Dani, will take on another Chinese Sun Feixiang in the pre-quarterfinals.
Indian challenge in the women's singles ended on Wednesday with the elimination of Sai Uttejitha Rao Chukka and Sri Krishna Priya Kudaravalli.