For China's COVID policy, change comes in small increments

China is sticking with a strict COVID-19 containment strategy nearly three years into the pandemic, potentially disappointing investors hoping for a quick reopening, although authorities are making ongoing if modest tweaks to managing the virus. Numerous analysts and experts say China is unlikely to begin significant easing of its outlier zero-COVID approach, which is squeezing the economy and fuelling widespread frustration, before an annual parliamentary session in March - at the earliest. Authorities are making changes such as more precisely targeting lockdowns, rolling out new vaccines and adding international flights. But they have not taken steps, like a big new vaccination push or preparing the public for the possibility of a surge in infections, that would enable significant easing of restrictions. Chinese stocks surged 5.3% last week, the biggest weekly gain in more than two years, as investors pumped a trillion dollars into the market on hopes of a reopening in the world's second-biggest economy. International flights are rising: daily international flights last month on Chinese airlines rose 21.9% from September on average, according to Variflight. Still, international capacity is at just 7.3% of 2019 levels, based on data from CAPA and OAG. China may soon shorten COVID quarantine requirements for inbound travellers from 10 days to seven or eight days, people familiar with the matter told Reuters on Friday. Bloomberg News said China was working on scrapping a system that penalises airlines for bringing in COVID-positive passengers, citing people familiar with the matter, saying the effort was a sign authorities were looking for ways to ease the impact of its COVID policies. Neither move would be a game changer. "The government still believes they are doing a good job of balancing economic development and COVID control," said Huang at the Council on Foreign Relations.<br/>