Abstract: The effect of condensation heating on the formation of enclosed subtropical anticyclone centers is studied using theoretical analysis and numerical simulation. The complete form of vertical vorticity tendency equation is employed for the analysis. It is found that, due to the variation of the vertical gradient of strong convective condensation heating, the distribution of cyclone and anticyclone in upper troposphere is out of phase with that in the middle and lower level in the troposphere. This is confirmed by numerical experiments. It is concluded that condensation heating is a key factor for the formation and location of summer subtropical high in the eastern hemisphere. The latent heating released by the monsoon rainfall forces the 200hPa South Asia high on the western side of heating center, and the 500hPa Western Pacific subtropic high on the eastern side of the center. Circulation in mid-high latitudes is also affected by the latent heating in subtropical area through the propagation of Rossby wave.