China’s biggest mutual fund manager cut equity holdings in the second quarter of this year to stave off risks stemming from elevated valuations that complicate investors’ stock picks and temper expected returns.Zhang Kun, whose 134.5 billion yuan (US$20.7 billion) in assets under management outrank any other domestic money manager in China, lowered positions in each of his four funds, according to the funds’ quarterly reports. He made the most aggressive cut in a fund focusing on smaller…