Hamilton, who has won a record six Chinese Grands Prix, flew round the resurfaced 5.451km Shanghai International Circuit in 1min 30.849sec.
His lap easily beat the 1:32.238 set in 2004 at the inaugural Chinese GP by fellow seven-time world champion Michael Schumacher, also in a Ferrari.
Reigning world champion Max Verstappen of Red Bull, who won both the sprint and main race in China last year, was second fastest 0.018sec behind and McLaren’s Oscar Piastri was third.
Charles Leclerc was fourth as Ferrari showed a big improvement from Melbourne, where Hamilton was 10th and Leclerc eighth — the Scuderia’s worst season-opening performance since 2009.
“I’m just a bit gobsmacked, taken back by it. I didn’t know when we would get to this position,” said Hamilton, who emerged from his car to a huge ovation from the Chinese fans.
“I started out straight away with a better feeling in the car. I can’t believe we are at the front, ahead of a McLaren which has been so fast throughout winter testing, Australia and even today.”
A big surprise was Melbourne winner Lando Norris, whose McLaren had been fastest by almost half a second in morning practice ahead of Leclerc, Piastri and Hamilton.
Norris was sixth after he ran wide and aborted his final flying lap.
“I made a mistake. I locked up in the last corner,” admitted Norris, who complained his car was not to his liking.
“Just too many mistakes but just too difficult of a car to drive,” the Englishman said.
Verstappen said he was fortunate to be second on the grid for the sprint race.
“The lap was very good. I don’t even think we should have been on the front row anyway so I’m very happy to be second,” said the four-time world champion.
Mercedes’ George Russell was fifth with his teammate Kimi Antonelli seventh behind Norris.
Yuki Tsunoda’s RB, Alex Albon’s Williams and Lance Stroll’s Aston Martin rounded out the top 10.
Ferrari team principal Fred Vasseur said it was difficult to understand the difference between Friday’s sessions.
“Sometimes McLaren had a huge gap, sometimes not so. Let’s analyse it. We have a lot of work to do,” Vasseur told Sky Sports F1.
“For sure it’s a good feeling and gives a positive energy to the team and Lewis, but I always see the negative side.”
All the cars were obligated to run medium-compound tyres in the first two sprint qualifying sessions, termed SQ1 and SQ2.
Red Bull rookie Liam Lawson had a bad start to his weekend, failing to get out of the first session after having a lap time deleted for exceeding track limits and the New Zealander will start 20th and last.
Also eliminated after the first session were the Alpine pair of Jack Doohan and Pierre Gasly, Haas’s Esteban Ocon and the Sauber of Nico Hulkenberg.
In SQ2, Fernando Alonso was 11th in the Aston Martin and missed out on the top-10 shootout.
Also eliminated were Oliver Bearman’s Haas, the Williams of Carlos Sainz, Gabriel Bortoleto in a Sauber and Isack Hadjar’s RB.
The 19-lap sprint race will take place on Saturday morning before grand prix qualifying later the same day.
Sunday sees the Chinese Grand Prix over 56 laps. (AFP)
