The authors of this paper processed the rhythmic sequence data of the Middle Triassic Flysch attained in the field in the Nanpanjiang Basin, southwest of China. The Markov chain simulation method is mainly used to create transition probability matrices, limit probability matrices and circulation matrices. The authors found and named the cyclic chain and the secondary cyclic chain and gave a solution for these cyclic chains. Based on the simulation, 20 cycle models with sketch profile diagrams of rock type units for the flysch rhythmic sequences are given, being correlated respectively to the outcrop sections of flysch strata measured in the Nanpanjiang area. The authors analyzed the relationship between the rhythmic models derived from the simulation and the sedimentary environments in different locations of the Nanpanjiang Basin during the Middle Triassic. The rhythmic models show that north parts (e.g. Bianyang and Lanmu) of the basin belonged to littoral areas with tidal facies while the southern parts (such as Tianlin and Xilin) were the basin axis with strong event deposits of turbidities. All the facies distribution model shows that Nanpanjiang Basin was a remnant basin during the Middle Triassic.