The problem of the fracturing water remaining in hydraulically fractured shale gas reservoirs has become one of the major concerns in terms of gas productivity and operating costs. The fracturing water retention is influenced by reservoir properties and production parameters, such as matrix porosity and permeability, fracture porosity and permeability, Langmuir pressure and volume, diffusion coefficient, shut-in time, drawdowns and injection rate. In this study, a horizontal well with six-stage hydraulicfracturing treatment was constructed to understand the water retention and gas production performance in shale gas reservoirs. Gas diffusion, gas adsorption/desorption and Darcy flow as well as non-Darcy flow were considered in this model. The process of water retention and gas production performance was analyzed, and the effects of reservoir and production properties on this problem were performed. The results show that only 34% of the fracturing water can flow back to the surface, most of which remains in shale formations to interfere with gas production. The increasing of matrix porosity, fracture porosity, Langmuir pressure and drawdowns will reduce water retention while water retention in shale matrix will increase with the increasing of matrix permeability and Langmuir volume, and consequently impact gas production. But the trapped water and gas rate increase with the higher fracture permeability. Furthermore, the diffusion coefficient, shut-in time and injection rate do not have a significant effect on water retention and gas productivity. These results can provide insights into a better understanding of gas and water flow in the shale gas reservoirs and the effects of reservoir and production parameters onwater retention and gas production.