  Using the carefully selected industry classification standard, we divide 102
industry securities indices in China's stock market into four demand-oriented
sector groups and identify demand-oriented industry-specific volatility
spillover networks. The "deman-oriented" is a new idea of reconstructing the
structure of the networks considering the relationship between industry sectors
and the economic demand their outputs meeting. Networks with the new structure
help us improve the understanding of the economic demand change, especially
when the macroeconomic is dramatically influenced by exogenous shocks like the
outbreak of COVID-19. At the beginning of the outbreak of COVID-19, in China's
stock market, spillover effects from industry indices of sectors meeting the
investment demand to those meeting the consumption demands rose significantly.
However, these spillover effects fell after the outbreak containment in China
appeared to be effective. Besides, some services sectors including utility,
transportation and information services have played increasingly important
roles in the networks of industry-specific volatility spillovers as of the
COVID-19 out broke. By implication, firstly, being led by Chinese government,
the COVID-19 is successfully contained and the work resumption is organized
with a high efficiency in China. The risk of the investment demand therefore
was controlled and eliminated relatively fast. Secondly, the intensive using of
non-pharmaceutical interventions (NPIs) led to supply restriction in services
in China. It will still be a potential threat for the Chinese economic recovery
in the next stage.
