From a tie for second entering the weekend, Kim wound up in equal 13th - still as the leading Australian - at the opening event of the LPGA Tour's all-important Asian swing.
With an even par final-round 72, Kim went one under for the championship, finishing a distant 10 shots behind popular home winner Ruoning Yin.
Yin buried a four-foot birdie putt on the 16th hole to break out of a back-nine tie with third-round leader Hye-Jin Choi and win by one stroke from the South Korean.
Choi and Yin tied for the lead after 10 holes and remained level through the 15th on Sunday at Sheshan Golf Club.
Yin missed a 10-foot birdie putt on 15 but made no mistake a hole later to move to 10 under, a stroke ahead of Choi with two holes to go, before ultimately winning with a final-round 68.
The victory was the seventh LPGA tournament win for Yin, who won the Shanghai event in 2024 and a major at the Women's PGA Championship in 2023.
Yin finished with a 72-hole total of 11-under 277, while Choi had a 71 on Sunday. Choi's countrywoman Amy Yang finished in third after a 68, three strokes behind Yin.
Choi was looking for her first victory on the LPGA Tour since joining in 2022 and after more than 100 starts. She led by three strokes after the first round, two after the second and one after 54 holes.
Defending champion Jeeno Thitikul, who won in a five-hole play-off over Minami Katsu last year, shot a final-round 69 to share eighth at three under.
The Thai world No.2 finished two shots ahead of Kim, who made an early Sunday charge with three front-nine birdies before fading.
Kim, however, still climbed from 62nd in the season-long points race to 58th, with the top 60 to qualify for next month's Tour Championship in Florida.
Fellow Australians Cassie Porter and Karis Davidson are also inside the qualification cut-off despite not contending in China.
World No.10 Hannah Green is already assured of making the field in Naples from November 19-22.
But triple major-winning superstar Minjee Lee is languishing in 78th spot in the points race with three events left before the $US11 million ($A16 million) season finale.
- with AP
With The AP
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