Economists were predicting 6.8% GDP growth for China, but despite the beat at 7% , there was a sell down in both the Shanghai and HK stock markets.
If anything, it showed that investors are skeptical of China maintaining its growth rate at 7%.
There could be several underlying reasons:
1) The sell off of China stocks occurred in July, which falls in Q3. Prior to that, the stock market was in a roll, therefore many of the core indices in the GDP rose.
2) The sell off resulted in a loss of wealth amounting to US$4T. This could impact consumption and investment in Q3.
3) Despite the many reductions in interest rates and bank reserve ratios, the economy is still faced with many challenges. This could mean further easing which serves only to inflate an already inflated debt bubble.
This is an interesting article from Bloomberg which is worth a read.
http://www.bloomberg.com/news/articles/2015-07-15/could-china-be-the-next-japan-
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