
The size of investments is growing as China's internet and technology markets mature, the report found.
"The median amount of capital put to work in IT deals in mainland China now stands at US$6.2m, the highest on record and up from the median of US$5m seen in 2006," said Bob Partridge, of Ernst and Young's transaction advisory services department in China.
"As investors move to monetise China's internet, we have seen a consistent increase in the amount of capital invested in IT deals."
Firms in China's information services sector attracted a total of US$209m in VC investment in the second quarter, more than any other sector.
The investment, in 22 separate deals, was more than double the amount seen in the first quarter, with an average deal size of more than US$9m.
Companies receiving funding included blogs, social networks, wikis and other web 2.0 companies, according to the report.
"Reflecting the quick development of web 2.0 products and services, 50 of mainland China's 55 total deals were for companies in advanced stages of development," the report stated.
"Of these, eight deals were for companies already turning a profit and 42 had fully developed product offerings."
Total venture capital investments in China's IT and internet firms rose 82 per cent quarter-on-quarter to reach $347m, the highest quarterly figure for almost four years.