China's top player, Wen-Chong Liang, carded a 5-under-par 65. He was joined in third place by Graeme Storm and Gregory Bourdy.
Randhawa got off to a slow start with five pars and a bogey over the opening six holes at Hong Kong Golf Club. He rebounded from a bogey on five with a birdie at the seventh.
The 34-year-old made it two straight as he birdied the eighth. Around the turn, Randhawa's approach at the 10th stopped within 2 feet. He tapped that in for birdie to move to minus-2.
Randhawa nearly holed his tee shot at the par-3 12th. His ball landed within inches of the cup, but rolled 4 feet by the hole. No matter as he sank that birdie putt.
He drained a 15-foot birdie putt at the 14th, then knocked his second shot within inches of the hole on 15. Randhawa kicked that in for birdie to move to minus-5. He knocked his approach at the last just as close as the one on 15 and tapped in the birdie putt to gain a share of the lead.
Lara started on the back nine and collected back-to-back birdies from the 11th. He sank a birdie try on 17 to turn at minus-3.
The Spaniard dropped in his fourth birdie putt at the first. Lara moved to 5 under with a birdie on the par-5 third. After four straight pars, he poured in a 14-foot birdie putt on the eighth to end at 6 under.
'I putted so well. The greens are tough to read and I read them well today,' stated Lara. 'Six under on this course, a par-70 is tough, and it is a good round. You have to negotiate the course well. It is not very easy.'
Jeev Milkha Singh, who won the Volvo Masters three weeks ago, posted a 4-under-par 66. He stands alongside Adam Blyth, Jarmo Sandelin, Jong Yul Suk and Simon Khan in sixth place.
Simon Yates and Andrew Buckle are among nine players one stroke further back at minus-3.
Defending champion Colin Montgomerie posted a 1-under-par 69 and is tied for 41st. The Scotsman is one stroke behind Miguel Angel Jimenez and former U.S. Open champion Michael Campbell. Two-time U.S. Open winner Retief Goosen is one stroke behind Montgomerie at even-par.