Hong Kong and China's stock market slipped as China reported its economic data. The China's economy grow aligned with analysts' prediction. Although the second largest economy in the world showed a significant improvement in somel indicators, investors expected a stronger result.

Prior to the latest data published on Friday, Reuters reported that Han Seng index gained the highest in three months on Thursday. Han Seng closed higher 0.9% at 21,337.81 points, followed by Hong Kong China Enterprises Index which gained 0.5% to 9,237.90.

Expectations are rising ahead of announcement of China's economic data on Friday. Morgan Stanley expected a big raise in consumption data and a better than expected result.

"We believe the recent trade, car sales and electricity consumption data (in China) point to a potential upside surprise to March data." The New York-based financial service added, "In the near term, we continue to expect a cyclical improvement as past stimulus measures are still filtering through to the economy."

As China's National Bureau of Statistics published its first quarter economy today, the figure was aligned with prediction from analysts. In March, the second largest economy only grew 6.7%. The result marked a slowdown of economic growth, compared to the previous quarter at 6.8%.

Nevertheless, as Wall Street Journal reported, China's economy is on track to recover, as other key gauges of China's economy started to pick up. Chinese industrial production in March increased 6.8% from the previous year, beating analysts' estimates.

While retail sales also rose 10.5% from last year and new home starts climbed 19.2% in the first three months of 2016. Other indicators that are also higher than forecast are new credit, industrial output, and fixed-asset investment.

Still, the data failed to instill investors confidence which caused Hong Kong and China's stock market to retract previous gain. On Friday, Han Seng fell 0.16% to 21,304.21 after a 33.6 points correction, while China Enterprises Index dropped 0.3% to 9,210.59.

The fell has trimmed previous Thursday's three-month high gain. While Shanghai Composite Index also dropped 0.3% has shaved its previous 2.9% weekly advance.

Analysts said investors need more significant data in China's economic growth. Singapore-based senior sales trader of institutional sales for CMC Markets, Alex Wijaya, told Wall Street Journal that stronger data is needed to attract investors confidence.

"It would take a lot more significant improvement in Chinese economic data for global investors to be more calm and ease their worries from the bad start of the year," Wijaya said.

Managing director of sales trading at Haitong International Securities Andrew Sullivan wrote in client's note, as quoted by South China Morning Post, also said a similar tone.

"China data in-line, so more signs of stability but market unmoved at this stage as the potential for more easing will now be pushed out further," he wrote.

China's stock market slipped on Friday, as the country reported the economic growth is in accordance with analysts prediction. The fell has trimmed three-month high gain on Thursday, as investors expect stronger result from China's economy.