Confidence levels for Silicon Valley Venture Capitalists remained nearly unchanged in the third quarter of 2007 despite ongoing problems in the mortage and credit markets, according to a report released Tuesday by the University of San Francisco School of Business and Management .

The Silicon Valley Venture Capitalist Confidence Index, based on an October survey of 25 San Francisco Bay Area venture capitalists, registered 4.14 out of a possible 5 points. The results show continuing positive sentiments, according to the report’s author, Professor Mark Cannice.

“The VC Index remained strong despite and, in part, because of the sub-prime credit market fallout,” Cannice said. “This is because large private equity firms rely much more on liquid credit markets than local VC firms do.”

Cannice also released a report in Chinese venture capital, along with co-author Ling Ding, which showed an increased rating of 3.94 out of 5 in the third quarter. While venture capital investment in China reached a new record in the third quarter, concerns remained about excessive valuations and regulatory uncertainty, the report indicated.