Open this photo in gallery: People visit the Bund promenade along the Huangpu river at the Huangpu district in Shanghai on June 29.PEDRO PARDO/AFP/Getty Images Canada’s largest pension funds face a dilemma in China: The fast-growing superpower that is too large to ignore is becoming an uncomfortably risky place to make big investments. As economic and diplomatic tensions between China and the West have risen, fund managers are treading more cautiously around the world’s second-largest economy. In subtle but significant ways, most of the eight largest pension-fund investors in Canada – the “Maple Eight” – have tempered their appetites for...