China’s listed internet-technology companies are reeling from this year’s regulatory crackdown. But that hasn’t stopped the action in the private markets: Investors are still charging into many of the country’s technology startups. Venture capital and private-equity investment in Chinese startups for the first three quarters of 2021 rose 75% from a year earlier to $165 billion, according to research firm Zero2IPO. That total is higher than for full-year 2020, and is on track to beat the peak set in 2017. Fundraising is surging too. Lean times in China’s venture-capital sector from 2018 until 2020, triggered by new regulations on the...