In this article, a dynamic panel data model is constructed to analyze the factors affecting the development of capital market and financial centers. The estimate results show the activity of capital flow and the inertial effect play significant roles in the development of international financial center. With other conditions remain unchanged, the higher the level of the activity of international capital flow, the more developed the bond market will be, and the easier to build an international financial center, and vise versa. Additionally, the inertial effect of capital market also drives the formation of international financial center.