The chasing pack include Rory McIlroy, whose brilliant short game salvaged a 69 in the second round on Friday to keep him on track to capture a fourth straight year-long Race to Dubai title for being Europe's No.1 player.
McIlroy was tied for second in a five-man group that included Justin Rose (67) and Shane Lowry (67).
Fellow Ryder Cuppers Robert MacIntrye (67) and Tommy Fleetwood (71) were a further stroke back and Tyrrell Hatton (67) one more shot adrift.
They were all looking up at the 70th-ranked Hojgaard, who didn't make the Ryder Cup team this time — that honour fell to his twin brother, Rasmus — but is showing a reminder of his ability at the Earth Course.
The 24-year-old Dane shot 65, the low round of the day, to back up his opening 67 and was 12 under for the week.
Hojgaard won the tournament in 2023, didn't qualify for it last year, but is dominating a star-studded field on his return.
His only other 36-hole lead on the European tour was at the World Tour Championship two years ago, which remains his last win.
"It's one of my favourite tournaments to play," Hojgaard said. "It's great to be back in a bit of form.
"It suits my eye. It plays into my strengths, which is mid-irons. It's just a really good fit for me."
McIlroy mixed six birdies with three bogeys on a day when he was poor by his standards off the tee but his wedge play was magical.
Alongside McIlroy, Lowry and Rose in a tie for second were Rasmus Neergaard-Petersen (67) and Daniel Hillier (68).
Only Marco Penge and Hatton — second and third in the Race to Dubai standings, respectively — can overhaul McIlroy.
Penge (70) appears out of it in 44th place, 12 shots off the lead, so only Hatton can realistically stop the Northern Irishman.
Hatton, who is five behind Hojgaard, needs to win and for McIlroy to finish worse than tied for eighth.
Australia's lone competitor Elvis Smylie battled back after his disappointing opening round of 74, shooting a four-under 68 to move to two under and up into joint-35th place. It could have been even better if the left-hander hadn't bogeyed two of the last three holes.
