Wales made the men in black work hard at the 'Cake Tin' in the first half and held the pre-tournament favourites to a 12-5 lead at the break. Tim Mikkleson got the Kiwis off to a perfect start by racing over for a converted try in the first minute.
Wales regrouped and eventually scored in the fourth minute through Cardiff's Gareth Davies but New Zealand finished on top when Declan O'Donnell scored. With Tomasi Cama adding the extras for the second time, Wales were still in the match when the halftime hooter went.
The Kiwis showed their class by turning pressure into points in a keenly contested second half. O'Donnell scored his second try of the match with Buxton Popoalii adding a late touchdown to flatter the final scoreline.
The defeat sent Wales to the Plate competition where they didn't fare much better. The defeat to New Zealand appeared to have taken the stuffing out of Paul John's men as the South Africans raced to a 22-5 semi-final win.
Wales had a mountain to climb after conceding two converted first half tries but couldn't stem the flow in the second half when Branco du Preez and Paul Jordaan scored. Alex Cuthbert replied in the dying seconds but it was too little too late.