POWER OF ATTORNEY

	Know all by these presents, that the undersigned
hereby constitutes and appoints James D. Chiafullo and Arthur C. Sandel and
each of them as the undersigned's true and lawful attorney-in-fact to:


(1)	execute for and on behalf of the undersigned, in the undersigned's
capacity as an officer, director and/or 10% beneficial owner of Cathay
Merchant Group, Inc. (the "Company"), Forms 3, 4 and 5 in accordance with
Section 16(a) of the Securities Exchange Act of 1934 and the rules
thereunder;

(2)	do and perform any and all acts for and on behalf of
the undersigned which may be necessary or desirable to complete and execute
any such Form 3, 4 or 5 and timely file such form with the United States
Securities and Exchange Commission and any stock exchange or similar
authority; and

(3)	take any other action of any type whatsoever in
connection with the foregoing which, in the opinion of such
attorney-in-fact, may be of benefit to, in the best interest of, or legally
required by, the undersigned, it being understood that the documents
executed by such attorney-in-fact on behalf of the undersigned pursuant to
this power of attorney shall be in such form and shall contain such terms
and conditions as such attorney-in-fact may approve in his discretion.


The undersigned hereby grants to each such attorney-in-fact full power
and authority to do and perform any and every act and thing whatsoever
requisite, necessary, or proper to be done in the exercise of any of the
rights and powers herein granted, as fully to all intents and purposes as
the undersigned might or could do if personally present, with full power of
substitution or revocation, hereby ratifying and confirming all that such
attorney-in-fact, or such attorney-in-fact's substitute or substitutes,
shall lawfully do or cause to be done by virtue of this power of attorney
and the rights and powers herein granted.  The undersigned acknowledges
that the foregoing attorney-in-fact, in serving in such capacity at the
request of the undersigned, is not assuming, any of the undersigned's
responsibilities to comply with Section 16 of the Securities Exchange Act
of 1934.

This power of attorney shall remain in full force and effect
until the undersigned is no longer required to file Forms 3, 4 and 5 with
respect to the undersigned's holdings of and transactions in securities
issued by the Company, unless earlier revoked by the undersigned in a
signed writing delivered to the foregoing attorney-in-fact.

IN WITNESS
WHEREOF, the undersigned has caused this power of attorney to be executed
as of this 26th day of October, 2004.


/s/ Lewis Cheung
Lewis
Cheung