Saina, a World Championship silver medallist lost 16-21, 23-21, 4-21 to 19-year-old Zhiyi in an hour and seven minutes to bow out of the competition early on.
She trailed 0-4 in the first game and was unable to keep up with her opponent losing 16-21.
Saina won the second game 23-21, but in the decider there was no fightback from the Indian and Wang won eight consecutive points to win it easily.
In men’s singles, Lakshya Sen’s campaign also ended despite a hard-fought loss against Taiwan’s Wang Tzu Wei. Lakshya lost 21-15 18-21 10-21 in an hour and eight minutes.
However, the men’s doubles pair of Manu Attri and B Sumeeth Reddy registered a win over New Zealand’s Joshua Feng and Jack Jiang 21-17 21-10.
Earlier in the day, the pair of Ashwini Ponnappa and N Sikki Reddy lost against Chinese duo of Liu Xuanxuan and Xia Yuting 14-21 23-21 14-21 in an hour.