Venture capital investment in mainland China doubled in the second quarter of 2008, according to a report.

The region recorded its largest investment jump in five years. Venture capitalists pumped nearly $1.37 billion into 71 deals in the second quarter, compared with $662 million on 69 deals in the same period a year ago, according to the China Quarterly Venture Capital Report released Tuesday by Dow Jones VentureSource.

"In all, some $968 million, or 71 percent of all capital invested in China in the second quarter, went to companies in the 'information services' and 'media, content and information' sectors." Jessica Canning, global research director for Dow Jones VentureSource, said in the report.

Deal size increased, according to the report. Median deal size in china hit $10 million, the highest so far seen by Dow Jones VentureSource.

The largest deal seen for the period was a $430 million investment in Oak Pacific Interactive, a Beijing company that offers Internet space for Web 2.0 communities.

Source:redherring.