Miguel Angel Jimenez, who had climbed within four shots of Dyson, double- bogeyed his final hole to fall back to 9-under-par 207 after a round of 70. He is joined at minus-9 by Prayad Marksaeng (67). Jean-Francois Lucquin is one stroke further back at 8-under-par 208.
Lian-Wei Zhang, who became the Chinese golfer to win on the European Tour when he won the 2003 Caltex Masters, carded a 2-under 70. He shares fifth place with Australian Adam Groom and Irishman Paul McGinley at 7-under-par 209.
Dyson, who held the 36-hole lead for the first time in his career, did not look like someone who has never won a European Tour title. His experience on the Asian Tour, where he won three times in the 2000, is paying off.
The Englishman picked up his first birdie at the par-5 second. He then carded back-to-back pars before catching fire.
Dyson rolled in a birdie at the fifth and came right back to birdie No. 6 at the Tomson Shanghai Pudong Golf Club to climb to minus-12 and a four-shot cushion on the field. He was not done there either.
The 26-year-old birdied the seventh and eighth to make it four straight birdies. Dyson made it five in a row when he birdied the ninth to move six strokes clear of the field.
While others tried to make a run at him, Dyson calmly parred the final nine holes to maintain that six-stroke lead. Dyson is playing just his third event since cracking a bone in his arm at the Caltex Masters in March.
'I had it at a 90-degree angle for about three weeks and just couldn't move it at all,' said Dyson of his arm. 'About four weeks later it was fine. This is my third tournament back and I haven't felt any side effects. It still feels a bit weak but it doesn't hurt, that's the main thing.'
Jimenez, winner of the Johnnie Walker Classic and Algarve Open de Portugal earlier this year, climbed within four strokes of Dyson's lead but stumbled to a double bogey at the last.
The Spaniard, a former European Ryder Cup performer, was 4 under through 14 holes of his round when things took a turn for the worse. He faltered to a bogey at the 16th, but came back to birdie 17. His struggles on the final hole closed a round of 2-under 70 and dropped him six shots behind Dyson.
Marksaeng moved up the leaderboard quickly. He eagled the par-4 first to get to 6 under. The native of Thailand stumbled to a bogey at the par-4 fourth but recovered with birdies at Nos. 6 and 8 to get to 7 under.
Around the turn, Marksaeng birdied the 10th before moving into a share of second place with a birdie at the par-4 14th. He parred in to remain in second, six shots behind Dyson.
Greg Norman had continued his solid play in just his second European event of the season, but was disqualified after the round. The Australian took an incorrect drop on the 17th hole costing him a chance at his best finish of the 2004 season.
'Greg Norman dropped in a wrong place in taking relief from the water hazard on the 17th hole,' said Andy McFee, the European Tour's Senior Referee. 'He dropped within two club-lengths of the yellow line rather than keeping the point of entry between himself and the hole. To drop correctly, he would have had to either return to the tee or use the drop-zone.
'As the place where he dropped was 60 to 70 yards, in advance of the drop zone, this was a serious breach of the Water Hazard Rule and as it was not corrected before teeing off the next hole, he was subject to a penalty of disqualification.'
Alex Cejka and Des Terblanche share eighth place at 6-under-par 210. K.J. Choi, a regular on the American PGA Tour, posted a 1-under 71 and stands at 5-under-par 211. Yuan-Chi Chen, Jyoti Randhawa, Jeev Milkha Singh and Marcus Both are one stroke further back at minus-4.
Padraig Harrington, who won this event last year, closed with back-to-back bogeys to end at 1-over 73 for his round. He stands at 1-over-par 217 in a tie for 40th place.