Li Na, Asia's highest-ranking player in tennis history and the top seed at the WTA tournament, downed Peng, who was seeded fifth, 6-4, 7-5.
Hsieh became the first player from Taiwan to win a Grand Slam title while Peng gave China its first doubles title at a major in seven years.
Li Na's momentous French Open title win of 2011 was expected to open the floodgates for Asian -- and in particular Chinese -- players in world tennis.
Rising British star Laura Robson on Thursday reached the semi-finals of the WTA Guangzhou Open by defeating China's Peng Shuai 7-5, 5-7, 6-2.
China's Peng Shuai said the Olympic tennis tournament will be much more exciting than the regular Wimbledon as it is a one-off special with national pride at stake.
Good thing Wimbledon schedules its middle Sunday as a day off. This year, that gave everyone a chance to catch their breath after an eventful Week 1. Really, when action resumes Monday with all 16 men's and women's fourth-round matches, what could Week 2 possibly have in store to equal what the first six days offered?
Maria Sharapova stormed into the French Open last 16 on Saturday, brushing aside China's Peng Shuai 6-2, 6-1, while semi-final rivals Li Na and Petra Kvitova laboured to reach the second week.
India's nightmare at the French Open continued with Leander Paes and his Austrian partner Alexander Peya being dumped out of the men's doubles second round by Mikhail Elgin of Russia and Denis Istomin of Uzbekistan here Saturday.
Six major champions successfully made their way through the first round of the French Open on the opening day. One didn't.
The red clay courts of the Italian Open "seem like paradise" to Novak Djokovic after a week on the experimental blue surface in Madrid.
China's grand slam champion Li Na stormed into the Australian Open's third round Wednesday but compatriot Peng Shuai fell by the wayside.
Seventh-seeded Francesca Schiavone needed just 53 minutes to advance to the third round of the US Open, beating Mirjana Lucic 6-1, 6-1 on Thursday.
Kveta Peschke and Katarina Srebotnik, the second seeds, captured the Wimbledon women's doubles title on Saturday with a 6-3, 6-1 win over Sabine Lisicki of Germany and Australia's Samantha Stosur.
Former champion Maria Sharapova surged into the fourth round at Wimbledon with a 6-2, 6-3 win over unseeded Czech Klara Zakopalova on Saturday.
Chinese number two Peng Shuai said Li Na's breakthrough French Open win had ramped up the interest in Chinese tennis - and the pressure.
Ana Ivanovic reached her first semifinal since October by beating Mirjana Lucic 6-3, 6-4 at the Aegon Classic on Friday.
China's state-run sports system is known for its rigid structures and harsh methods, but Li Na's Grand Slam breakthrough shows how the machine is undergoing a major overhaul with Western help.
Rafael Nadal admitted he is feeling the strain of his French Open heroics after the world number one kicked off his grass-court campaign with a 6-4, 6-4 win over Australian qualifier Matthew Ebden at Queen's on Wednesday.