EXHIBIT 31.1

CERTIFICATION OF THE
PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Smith, certify that:

|1. | I have reviewed this quarterly report on Form 10-QSB of Cathay Merchant Group,
          Inc.;
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|2. | Based on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report;
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|3. | Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report;
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|4. | I am responsible for establishing and maintaining disclosure controls and
          procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
          internal control over financial reporting (as defined in Exchange Act Rules
          13a-15(f) and 15d-15(f))for the registrant and have:
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| | a) | Designed such disclosure controls and procedures, or caused such disclosure
                    controls and procedures to be designed under our supervision, to ensure that
                    material information relating to the registrant, including its consolidated
                    subsidiaries, is made known to us by others within those entities, particularly
                    during the period in which this report is being prepared;
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| | b) | Evaluated the effectiveness of the registrants disclosure controls and
                    procedures and presented in this report my conclusions about the effectiveness
                    of the disclosure controls and procedures, as of the end of the period covered
                    by this report based on such evaluation; and
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| | c) | Disclosed in this report any change in the registrants internal control
                    over financial reporting that occurred during the registrants most recent
                    fiscal quarter (the registrants fourth fiscal quarter in the case of an
                    annual report) that has materially affected, or is reasonably likely to
                    materially affect, the registrants internal control over financial
                    reporting; and
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|5. | I have disclosed, based on my most recent evaluation of internal control over
          financial reporting, to the registrants auditors and the audit committee
          of the registrants board of directors (or persons performing the
          equivalent functions):
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| | a) | all significant deficiencies and material weaknesses in the design or operation
                    of internal control over financial reporting which are reasonably likely to
                    adversely affect the registrants ability to record, process, summarize and
                    report financial information; and
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| | b) | any fraud, whether or not material, that involves management or other employees
                    who have a significant role in the registrants internal control over
                    financial reporting.
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|Dated:   December 15, 2004 | By: /s/ Michael J. Smith                                                                                                                      
|                           | Michael J. Smith,
Chief Executive Officer, President
and Chief Financial Officer
 (Principal Executive Officer andPrincipal Finanical Officer)