Could films also be insured? The answer is yes for "The Banquet" after the producer yesterday signed a deal with an export credit insurer to support the movie''s overseas sales.

It is the first time a Chinese movie has gone global with the support of export credit insurance, said Zhou Ji''an, assistant president of Sinosure, China''s only policy-oriented insurer specializing in export credit insurance.

The Banquet, starring Asia''s rising film stars Zhang Ziyi and Zhou Xun, mainland actor Ge You and Hong Kong''s Daniel Wu, has been described as a loose adaptation of "Hamlet," featuring royal conflicts and revenge in 10th century China.

The movie, expected to debut in Guangzhou on August 30, is in the running for next year''s Best Foreign Language Film Oscar.

According to Wang Zhongjun, president of producer Huayi Brother, the company aims to sell the movie to the American, European and Asian markets.

Usually, China''s film producers prefer selling movies'' overseas copyrights for a lump sum at a low price rather than opting for profit participation, although it is widely accepted that participation could bring higher profits.

"Fears of failing to get the money back and running short of cash are the two major reasons producers take a lump sum," said Zhou, adding the lump sum offered guaranteed cash despite the poor profits. "This is where export insurance could play a big role."

With a warranty from Sinosure, Huayi Brother acquired 50 million yuan (US$ 6.25 million) to finance the movie. And due to Sinosure''s risk management scheme, the company chose profit participation when selling "The Banquet" overseas.

Although China''s monthly trade surplus increased to a record high of US$14.6 billion in July, the country''s culture products and services are in a big trade deficit.

In 2004, China imported 4068 copyrighted works from the United States, but only exported 14.

"Lack of financial support and risk management is part of the reason," said Zhou Ji''an, citing the growth in the Republic of Korea (ROK)''s movie exports as proof.

Backed with export insurance, ROK''s movie exports achieved a sixty-fold increase in five years, Xinhua statistics show. -China Daily