Private equity and venture capital funds in China continued to be attracted by the bright lights of the country's booming film and television industry which generates high returns, an industry report said Wednesday.

The funds invested US$212 million in 22 film and TV-related projects in 2012, the Zero2IPO Research Center said in a report. The number of deals rose from 16 in 2011 and was the most since the funds first tapped the film and TV industry in 2005.

"The film and TV industry generates rising value for investors thanks to unprecedented growth in box-office (takings) amid an increasing consumption of cultural products," said Zhang Qi, researcher with Zero2IPO.

Most of the PE/VC investments now focus on production and launch of film and TV products, but Zero2IPO sees more openings in marketing and promotion, advertising sales, design as well as making of peripheral products.

Cinema advertising revenue has soared to 2.15 billion yuan (US$352 million) in 2012 from 220 million yuan in 2007, or up 58 percent annually, according to the report.