Striving to crown her stellar LPGA Tour season with player-of-the-year honours, Lee compiled a flawless seven-under-par 65 to be sitting just one shot behind surprise Thai leader Arpichaya Yubol.
Australia's world No.4 collected seven birdies - three on the front nine and four more on the back - at Qizhong Garden Golf Club to share second spot with world No.1 Jeeno Thitikul, Koreans Ina Yoon and Jenny Shin and American Jenny Bae.
"I felt quite solid out there. My drivers were pretty solid. Iron game was pretty good as well," Lee said.
"I feel like with how the greens are, the conditions, I managed pretty well to make, what, seven birdies, so it was nice day for me."
After years of putting despair, Lee credits her trusted broomstick with reviving her career following her longest title drought since turning pro.
"I just don't have as much pressure with it," the West Australian said.
"Obviously it's freed me up a lot and gives me a lot freedom to stroke the putt. If it goes in the hole or doesn't, as long as I put a good stroke on it, I have no other control outside of that.
"So in terms of the actual fundamentals of it, it's quite simple."
While Lee was steady as she goes in an another effortless display of supreme ball striking, Thitikul recovered from three over after two holes with a stunning 10-birdie blitz in her final 14 holes as the Thai superstar continues her ding-dong battle for player-of-the-year honours.
Thitikul and Lee are first and second with seven events remaining, including the season-ending $US11 million ($A16.71 million) Tour Championship in Florida from November 20-23.
After capturing a third career major at the Women's PGA Championship in June, Lee already has the ANNIKA award in the bag as major player of 2025.
But the 29-year-old is bidding to complete a golden double, as well as top the season's money list.
Lee enjoys a $US490,000 ($A745,000) lead over Thitikul in that contest, with the pair to resume their battle in the marquee second-round grouping on Friday with defending champion Ruoning Yin.
Behind Lee and company, another 10 players are within four strokes of the lead in a thrilling start to the all-important Asian swing.
Yin has much ground to make up, the Chinese opening with a one-under 71 to be seven shots off the pace.
Lee's compatriots Gabriela Ruffels and Robyn Choi are tied for 17th following three-under 69 starts on Thursday.
Karis Davidson had been right in the mix at five under until dropping a shot on her 15th hole, then racking up a dreaded double-bogey seven at the par-5 last.
Davidson settled for a two-under 70 to share 27th position with fellow Australians Cassie Porter and Steph Kyriacou.
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