* China state media editorial warns of market risks
* Factory gate price data shows continued COVID-19 impact
SHANGHAI, July 9 (Reuters) - China shares extended a winning streak into an eighth session on Thursday, helped by policy support, abundant liquidity and retail investor enthusiasm, even as an official commentary warned traders to respect the market and manage risks.
** The recent stellar performance of China’s share market has prompted comparisons to a boom and bust in 2015-2016, fuelled by illegal margin lending, that saw the benchmark Shanghai index fall more than 40% from its peak in just a few weeks. ** At the midday break, the Shanghai Composite index was up 1.03% at 3,438.61 points. ** China’s blue-chip CSI300 index was up 1.1% after closing at a more than five-year high on Wednesday. ** The financial sector sub-index rose 0.13%, the consumer staples sector gained 1.09%, the real-estate index added 0.61% and the healthcare sub-index jumped 3.01%. ** Shares rose despite data showing that China’s factory gate prices fell for a fifth straight month in June as the pandemic weighed heavily on industrial demand. ** After the recent bull run in equities, Chinese state-run media warned in commentary that investors should pursue rational investments and respect the market and manage risks. ** Chinese H-shares listed in Hong Kong rose 0.59% to 10,811.01, while the Hang Seng Index was up 0.47% at 26,252.36. ** The smaller Shenzhen index was up 2.26% and the start-up board ChiNext Composite index was higher by 3.69%. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.85%, while Japan’s Nikkei index was up 1.01%. ** The yuan was quoted at 6.9834 per U.S. dollar, 0.31% firmer than the previous close of 7.0049. ** So far this year, the Shanghai stock index is up 11.58%, while China’s H-share index is down 3.8%. Shanghai stocks have gained 14.03% so far this month. ** About 36.11 billion shares have traded so far on the Shanghai exchange, roughly 127.5% of the market’s 30-day moving average of 28.33 billion shares a day. The volume traded was 58.71 billion as of the last full trading day. (Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips)