Japanese rink idol Hanyu showed no ill effects from the right ankle injury that sidelined him for three months to surge into a four-point lead with a score of 111.68.
Six-time European champion Javier Fernandez of Spain heads the chase going into Saturdays free skate at the Gangneung Ice Arena on 107.58.
Chen looks down and out after two major mistakes left him towards the back of the pack in 17th.