Finally found something in writing from Cathay. Please see and save the following link/document regarding HK transit visa waiver for Nepalese when travelling on Cathay Pacific and Dragon Air. Just to be on the safe side make sure to take a copy of it specially if you are flying out of small cities as other airline staff may not know about the rule and would ask you to show HK transit visa.

Thanks!

http://www.cxagentsusa.com/GeneralInformation/subdefault.asp?SectionID=10#idx (Visa Requirements > Nationals of Nepal Transit Update)

http://www.cxagentsusa.com/updates/PDFs/AirsideTransitReqHKG07Nov20071.pdf