China's banking authority clarified on Tuesday that the rules that a single foreign-funded institution can hold up to a 20 percent stake in a Chinese bank remain unchanged, according to a report from Xinhua News Agency.

The new rules sent out on March 27 for public consultation said all foreign investors should hold at least 25 percent of voting shares directly or indirectly to control a Chinese-funded financial institution.

A widespread misinterpretation of the new planned rules come out that many people believe foreign institutions can hold 25 percent Chinese bank stake.

It doesn't mean that the 20 percent shareholding ceiling for an individual foreign-funded financial agency has changed, an official with the supervisory rules and regulation department of the China Banking Regulatory Commission (CBRC) said on Tuesday.