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Complex fracture systems including natural fractures and hydraulic fractures exist in shale gas reservoir with fractured horizontal well development. The flow of shale gas is a multi-scale flow process from microscopic nanometer pores to macroscopic large fractures. Due to the complexity of seepage mechanism and fracture parameters, it is difficult to realize fine numerical simulation for fractured horizontal wells in shale gas reservoirs. Mechanisms of adsorption–desorption on the surface of shale pores, slippage and Knudsen diffusion in the nanometer pores, Darcy and non-Darcy seepage in the matrix block and fractures are considered comprehensively in this paper. Through fine description of the complex fracture systems after horizontal well fracturing in shale gas reservoir, the problems of conventional corner point grids which are inflexible, directional, difficult to geometrically discretize arbitrarily oriented fractures are overcome. Discrete fracture network model based on unstructured perpendicular bisection grids is built in the numerical simulation. The results indicate that the discrete fracture network model can accurately describe fracture parameters including length, azimuth and density, and that the influences of fracture parameters on development effect of fractured horizontal well can be finely simulated. Cumulative production rate of shale gas is positively related to fracture half-length, fracture segments and fracture conductivity. When total fracture length is constant, fracturing effect is better if single fracture half-length or penetration ratio is relatively large and fracturing segments are moderate. Research results provide theoretical support for optimal design of fractured horizontal well in shale gas reservoir. [ABSTRACT FROM AUTHOR]