-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 S/Xn61hEecjEDmg25V4ZH8aVa1/HN8LCDtnc+DsSU4yzAqNv8hCRPto7vJAJ5uOW
 TTxI4QP6U7FNl/SBSxdvew==

<SEC-DOCUMENT>0001085037-04-001206.txt : 20041110
<SEC-HEADER>0001085037-04-001206.hdr.sgml : 20041110
<ACCEPTANCE-DATETIME>20041109164941
ACCESSION NUMBER:		0001085037-04-001206
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041105
FILED AS OF DATE:		20041109
DATE AS OF CHANGE:		20041109

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CATHAY MERCHANT GROUP, INC.
		CENTRAL INDEX KEY:			0000352281
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS BUSINESS CREDIT INSTITUTION [6159]
		IRS NUMBER:				042608713
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0731

	BUSINESS ADDRESS:	
		STREET 1:		3604 TOWER 1,  KERRY EVERBRIGHT CITY
		STREET 2:		218 TIAN MU ROAD WEST
		CITY:			SHANGHAI
		STATE:			F4
		ZIP:			200070
		BUSINESS PHONE:		86-21-6353-0012

	MAIL ADDRESS:	
		STREET 1:		3604 TOWER 1,  KERRY EVERBRIGHT CITY
		STREET 2:		218 TIAN MU ROAD WEST
		CITY:			SHANGHAI
		STATE:			F4
		ZIP:			200070

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EQUIDYNE CORP
		DATE OF NAME CHANGE:	20000110

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN ELECTROMEDICS CORP
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MFC BANCORP LTD
		CENTRAL INDEX KEY:			0000016859
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		STATE OF INCORPORATION:			B0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16283
		FILM NUMBER:		041130223

	BUSINESS ADDRESS:	
		STREET 1:		FLOOR 21, MILLENIUM TOWER
		STREET 2:		HANDELSKAI 94-96
		CITY:			A-1200 VIENNA
		STATE:			C4
		BUSINESS PHONE:		43 1 240 25 300

	MAIL ADDRESS:	
		STREET 1:		FLOOR 21, MILLENIUM TOWER
		STREET 2:		HANDELSKAI 94-96
		CITY:			A-1200 VIENNA
		STATE:			C4

	FORMER NAME:	
		FORMER CONFORMED NAME:	ARBATAX INTERNATIONAL INC
		DATE OF NAME CHANGE:	19960603

	FORMER NAME:	
		FORMER CONFORMED NAME:	NALCAP HOLDINGS INC
		DATE OF NAME CHANGE:	19950725

	FORMER NAME:	
		FORMER CONFORMED NAME:	JAVELIN INTERNATIONAL LTD
		DATE OF NAME CHANGE:	19871118
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4mfc_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-11-05</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000352281</issuerCik>
        <issuerName>CATHAY MERCHANT GROUP, INC.</issuerName>
        <issuerTradingSymbol>IJX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000016859</rptOwnerCik>
            <rptOwnerName>MFC BANCORP LTD</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>FLOOR 21, MILLENIUM TOWER</rptOwnerStreet1>
            <rptOwnerStreet2>HANDELSKAI 94-96</rptOwnerStreet2>
            <rptOwnerCity>A-1200 VIENNA</rptOwnerCity>
            <rptOwnerState>C4</rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription>AUSTRIA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>common stock, par value $0.10 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2004-08-24</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2004-08-24</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3738044</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.50</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3738044</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Sutton Park International Limited</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>common stock, par value $0.10 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2004-11-05</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2004-11-05</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>680000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>680000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Convertible Debt (Note 2)</value>
                <footnoteId id="F3"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0</value>
                <footnoteId id="F4"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-08-24</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2004-08-24</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>0</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-04-01</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-03-31</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>common stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>0</value>
                    <footnoteId id="F3"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By MFC Merchant Bank SA</value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">(C)	On August 24, 2004, upon MFC Merchant Bank SA (&quot;MFC Merchant Bank&quot;) exercising its conversion rights under the Credit
 Facility Agreement (defined in Note 2) and converted $1,575,000 of the Commitment at a rate of exchange of $0.50 per share,
 the Issuer issued to MFC Merchant Bank 3,150,000 shares in the common stock, representing approximately 18.4% of the
 Issuer's common stock, and immediately, on the same day, MFC Merchant Bank transferred its 3,150,000 shares to Sutton Park
 International Limited at the same price of $0.50 per share for a total price of $1,575,000.  Both MFC Merchant Bank and
 Sutton Park International Limited are direct, wholly-owned subsidiaries of the Reporting Person, MFC Bancorp Ltd.</footnote>
        <footnote id="F2">(1)	On November 5, 2004, MFC Bancorp Ltd. acquired 200,000 shares at a price of $0.661 per share, 200,000 shares at a price
 of $0.671 per share, and 280,000 shares at a price of $0.6525 per share.</footnote>
        <footnote id="F3">(2)	Pursuant to a credit facility agreement (the &quot;Credit Facility Agreement&quot;) dated for reference April 1, 2004 between MFC
 Merchant Bank and the Issuer, MFC Merchant Bank will make available to the Issuer, subject to the terms and conditions of
 the Credit Facility Agreement, until March 31, 2009, a revolving credit facility (the &quot;Credit Facility&quot;) in the principal
 amount of up to $20,000,000 (the &quot;Commitment&quot;).  As part of MFC Merchant Bank's compensation for the services to be
 performed by it under the Credit Facility Agreement, MFC Merchant Bank may at any time and from time to time during the term
 of the Agreement convert the Commitment or any portion of the Credit Facility to shares of common stock of the Issuer.  MFC
 Merchant Bank is not entitled to exercise rights that will cause it to own or control greater than 19.99% of the voting
 control of the Issuer until such time as the Issuer has received shareholder approval to do so.  On August 24, 2004, upon
 MFC Mer</footnote>
        <footnote id="F4">(3)	The rate of exchange for purposes of calculating the number of shares in the common stock of the Issuer to be exchanged
 for the Commitment or a portion should be as follows: (amount of Commitment to be converted) divided by (the ten day average
 of the closing price of the stock of the Issuer).</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael J. Smith</signatureName>
        <signatureDate>2004-11-09</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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