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The women's doubles combination of Tanisha Crasto and Ashwini Ponnappa also lost in the pre-quarterfinals.
The women's doubles pair of Tanisha Crasto and Ashwini Ponnappa losy to sixth-seeded Lee Chia Hsin and Teng Chun Hsun in the quarterfinals.
Indian men's doubles duo M R Arjun and Dhruv Kapila, mixed doubles pair B Sumeeth Reddy and N Sikki Reddy, women's doubles combo Tanisha Crasto and Ashwini Ponnappa also entered the quarterfinals.
An error-prone P V Sindhu lost to world No. 1 An Se Young of Korea yet again.
The 28-year-old from Hyderabad will next face top seed Korean An Se Young, who has proved her nemesis.
Anmol Kharb outplayed Pornpicha Choeikeewong 21-14, 21-9 in the decider.
India blanked Hong Kong riding on wins from double Olympic-medallist P V Sindhu, Ashmita Chaliha and the doubles pair of Ashwini Ponappa and Tanisha Crasto.
With just two teams in Group W, India were assured of a knock-out round berth even before their opening match but the team made its mark in style with the shock win over the top-seeded Chinese side.
The badminton star started training with the Indian legend at the end of August.
Last week, the 28-year-old was forced to concede her second round match against Thailand's Supanida Katethong at the French Open.