Shixian was stunned by Chinese Taipei's Tai Tzu Ying in a hard-fought battle.
The world number two looked rusty in the first game, which she lost 18-21. However, she bounced back with a vengeance and forced a decider with her 21-9 win in the second game.
But, Shixian failed to get the job done in the decider and ended up losing the match 18-21, 21-9, 19-21.
Yihan meanwhile was taken down by India's Saina Nehwal 19-21, 6-21. After losing a close first game, the world number five did not put up much of a fight, which allowed Nehwal to finish her off with no problems whatsoever.
However, all is not lost for the Chinese women as unseeded entry Sun Yu caused her second consecutive upset in two days.
Following her shocking 21-13, 21-13 win over world number one Li Xuerui on Thursday, Sun continued to shine in her match against Thailand's Ratchanok Intanon.
Despite losing the first game 11-21, Sun refused to back down and she even clawed her way back into the match with a 21-19 win in the second game.
In the decider, Sun was on track to send Intanon home as she led 19-13 before her opponent retired hurt with an injury. It is understood that Intanon injured her calf muscle when falling over after attempting a smash.
As a result of the injury, Sun will now progress to the semi-finals.
Meanwhile, it has been confirmed that Lin Dan will face his Chinese compatriot and world champion Chen Long in the men's semi-finals after both players made easy work of their quarter-final opponents.
Lin was made to work hard for his 21-18, 21,19 win over Japan's Kento Momota, while Chen on the other hand breezed past Chou Tien Chen of Chinese Taipei 21-11, 21-11.