After we followed the policy of reform and opening up，the urbanization process developed rapidly in China. Especially after the implementation of Market Economy System in 1992，the capital market played an important role in the acceleration of urbanization growth stage. First of all，the paper introduced the growth stage of urbanization，main achievements and three typical urbanization models. Then capital market support for urbanization was analyzed in detail，involving urban infrastructure construction，small and medium enterprises，agriculture，rural areas and farmers，and adjustment of industrial structure. In the end，feasible suggestions of capital market support for urbanization were put forward，following analysis of problems referring to the policy environment.