The Hong Kong Stockbrokers Association is lobbying the Government and the exchange to postpone the scrapping of minimum commission due in April. Chairman Wilfred Wong Wai-sum said if the Government refused to delay the move the association would propose the adoption of a two-tier system under which transactions of more than HK$1 million would not incur a minimum commission charge. 'We would accept a situation where transactions with a value of less than HK$1 million still attract the minimum 0.25 per cent commission,' Mr Wong said. He said brokers faced higher transaction costs on deals of lower value. The exchange says scrapping the minimum rate cut transaction costs in the overall market but Mr Wong warned of an ensuing price war: 'This cut-throat competition would be dangerous as that may drive the smallest players out of the market. Under the current market situation, it may not be a suitable time to remove the minimum commission rate as the 500 stock brokers have been hit by low turnover. 'I think the customers do not only want the cheapest service but they also want high-quality service.'