World number three Rory McIlroy produced a moment of magic to boost his chances of a fourth win of the season in the WGC-HSBC Champions in Shanghai.

McIlroy had started his third round at Sheshan International with birdies on the second and sixth, but his chances of another on the par-five eighth looked to have disappeared following a wild approach.

However, the four-time major winner took on the risky recovery shot to a green protected by water, hitting a superbly-controlled low pitch to 15 feet and holing for an unlikely four.

That took the 27-year-old to 10 under par and within four shots of the lead held by the in-form Hideki Matsuyama, who is a career-high 10th in the world after winning the Japan Open a fortnight ago and finishing second in Malaysia last week.

Matsuyama had seen his three-shot overnight lead cut to a single stroke after playing partner Bill Haas birdied the second, fourth and sixth, but the American then bogeyed the eighth to drop back to 12 under alongside defending champion Russell Knox.

Knox, who is looking to become only the second player after Tiger Woods to retain a World Golf Championships title, had birdied the second and recovered from a bogey on the third by almost holing his tee shot on the fourth.

Italy’s Francesco Molinari was three off the lead after starting his round with birdies on the first three holes, while Open champion Henrik Stenson had gone one better and also picked up shots on the sixth and eighth.

A birdie on the ninth would have taken Stenson to the turn in 29, but the Olympic silver medallist three-putted from just short of the green to drop back to nine under.

England’s Richard Bland was two shots further back as he endured a rollercoaster round which included a one-shot penalty on the second after dropping his ball on to his marker on the green.

The 43-year-old responded superbly with three birdies in the next five holes, only to then find water with his approach to the eighth and run up a triple-bogey eight.

McIlroy’s eventful round continued with an errant tee shot on the 11th which hit a spectator and, after signing a ball for the unfortunate fan, the Northern Irishman missed the green with his approach.

A good chip to three feet looked to have prevented any damage, but McIlroy missed the par putt and failed to get up and down from a greenside bunker on the next as well.

At eight under par he was now seven behind Matsuyama, who had birdied the ninth to restore his three-shot cushion.

Knox birdied the 13th to reduce Matsuyama’s lead again, only to find water with his approach to the par-five 14th as Matsuyama hit the green in two.

A two or three-shot swing looked certain and Matsuyama duly two-putted from long range for birdie, but Knox holed from 25 feet for an unlikely par and birdied the 15th for good measure to get back within two of his playing partner.

McIlroy had dropped another shot on the 15th after a bad drive and, although he birdied the next, his title challenge looked to be effectively over.