The China market may trade in a narrow range on Wednesday, as concerns about the health of the economy are tempered by hopes of government action to lift growth.

The Shanghai Composite Index fell for a second day on Tuesday to close 0.29 percent lower at 2164.44. Volume declined by a third from Monday.

Market Factors:

Premier Wen Jiabao chaired two meetings Monday and Tuesday to hear opinions on the economy. Attendees included economists such as CNBC regular Qu Hongbin and CEOs for leading firms in automaking, investment, e-commerce, real estate, and alternative energy. Wen stressed that the government must urgently undertake some "visible, encouraging, real projects" in railways, municipal services, energy, telecommunications, health care, and education to boost investor confidence.

Stocks to Watch:

Transport, Energy Stocks - China will cut fuel prices from Wednesday by 400 yuan to 420 yuan ($63.24 to $66.41) per metric ton, or about 4 percent, the low end of an expected range, as the government seeks to minimize refining losses at state owned oil giants. Some of the market impact may already be reflected as the timing of the price cut had been reported.

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