Srikanth, who broke into the top 10 on Thursday following his historic win at China Open Super Series Premier, went down 17-21 21-19 6-21 to world champion Chen in a match that lasted over an hour in Kowloon.
Srikanth had lost to Chen at the BWF World Championships in August but the Indian played a better game today to clinch the second game before losing steam in the decider.
Srikanth lost a few points at the net as Chen moved to the game point with a mid court smash and soon pocketed the opening game when Srikanth hit the nets again.
In the second game, Srikanth struggled with the length early on and missed a few points hitting out as Chen led 4-0. Srikanth clawed back at 8-8 with the help of a smash and then moved ahead when Chen found the net.
Srikanth was calm even in the difficult positions and played an intelligent game to slowly carve out a 17-13 lead. The experienced Chinese kept breathing down his neck but the Indian wriggled out of some tricky situations to lead 18-16.
Chen erased the deficit but two erratic shots from him took Srikanth to 20-19 and the Indian grabbed the opportunity to bounce back in the contest when Chen hit long.
Srikanth continued to struggle after the breather as Chen had answers for all the tricky net dribbles and disguised strokes which the Indian threw at him.
Srikanth also committed too many unforced errors, hitting wide and long to hand over a massive 20-6 lead and then buried one into the net as Chen celebrated.
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