NEW YORK ( TheStreet) -- Chinese second-quarter growth announced Monday was at the top of an estimated range as the economy expanded by 7.5% versus an estimated range of 7-7.5%.Although it was the slowest growth in nine quarters, China reaffirms that global demand is not at a complete standstill and shows that developed economies, like the ones in Europe, may have hit a bottom. The first chart below is of iShares China Large-Cap ( FXI) over Vanguard Total World Stock Index ( VT). This pair represents Chinese equities' relative strength versus a basket of world equities. Chinese exports had missed expectations in past weeks, leading many to believe that Chinese growth numbers would reside at the bottom end of projections, but that didn't happen. Although growth in China has been on a downward trend over the past few years, it is still one of the strongest growth rates in the world. Strong growth signals that global demand may still be intact. Even if there are contraction fears across the globe, the lack of a hard landing in China, to date, shows that we are still on a gradual path toward an economic recovery. The relative strength of equities continues to underperform, although there looks to be a near-term bottom in the making. China's ability to outperform expectations may set riskier assets across the globe on an intermediate uptrend, similar to the one from mid-April to mid-May.