Oct 23 Reuters China is set to approve slightly more than 1 trillion yuan 137 billion in additional sovereign debt issuance on Tuesday as Beijing steps up its efforts to spur infrastructure spending and encourage economic growth, three sources told Reuters.

China39;s top legislators, the standing committee of the National People39;s Congress NPC, are set to approve the extra debt issuance on the last day of a meeting which has run from Oct. 20 to Oct. 24, said the sources, who declined to be named due to confidentiality constraints.

Beijing is aiming to announce the plans as soon as lateTuesday and begin issuing the debt, which is among the measures the Chinese government is taking to shore up the economy during down cycles, in November, two of the sources added.

In a sign that recent policy measures may be helping to bolster a tentative recovery, China39;s economy grew at a fasterthanexpected rate in the third quarter, while consumption and industrial activity in September also surprised on the upside.

The thirdquarter expansion put the government39;s annual growth target of around 5 for the world39;s secondlargest economy within reach, analysts said.

Two of the sources, said that nearly half of the proceeds to be raised from the additional bond issuance would be spent on water conservancy and flood prevention projects, while the rest would be mainly used for postdisaster reconstruction and highstandard farmland construction.

China, which has experienced an…