Kapur, who was going steady at two-under through 16 holes and was inside top-10, was disappointed with the final two holes as he finished with a even par 72 that saw him placed at Tied 15th after being seventh at the end of the first day
Kapur's colleague SSP Chawrasia, however fell by the wayside after a second successive 76 and missed the cut.
Frenchman Julien Quesne continued his fine form to establish a one-shot lead over his fellow Frenchman Alex Levy and America's Peter Uihlein heading into the weekend at the Tomson Shanghai Pudong Golf Club, in Shanghai.
Quesne, who finished in a tie for fourth in Shenzhen last Sunday, carded a five under par round of 67 to reach eight under par for the week.
Levy, who romped to a four-shot maiden victory in this event 12 months ago before picking up a second title in Portugal, had a makeable putt for what would have been a seventh birdie of the day to reach ten under par on the 14th hole, but having missed it then made a couple of errors over the closing holes.
Home heroes Li Hao-tong and Wu Ashun are amongst a group on five under par which includes Italian Matteo Manassero and last week's winner, Kiradech Aphibarnrat.
The cut fell at 146 and 67 players made the weekend.
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