Despite increased investment in recent years in a healthy number of funds focusing on China's booming cultural sector, the number of worthy deals being identified is reported to have dried up, according to experts.

According to a new report by ChinaVenture Group, which provides advice to China-focused investment banks and institutions, 92 cultural industry investment funds have been created in China since 2007.

Thirty-six of them are still open to new investment, but 56 now say they are closed to any new fundraising as there are too few deals available to invest in.