Sindhu, who recently clinched the China Super Series Premier and reached the finals at Hong Kong Open, lost 15-21 17-21 to World No. 6 Chinese in a contest that lasted 49 minutes.
Sindhu, who had defeated higher-ranked Akane Yamaguchi of Japan during her opening match yesterday, found the going tough against her Chinese opponent.
World No 2 Carolina Marin of Spain also figures in her same group and Sindhu will have task cut out when she faces the Spaniard tomorrow.
World No 10 Sindhu, however, put up some fight in the second game as took a lead and maintained a slight edge till 15-13 but the Chinese came from behind and made it 15-15 before bagging two more points to go ahead 17-15.
Although Sindhu won the next two points to make it 17-17, the Chinese won three consecutive points thereafter to shut the door on the Indian girl.