It's certainly not surprising.
>especially as a bastion of religious freedom
I would not use the word bastion here. Maybe technically it has religious freedom in code, but in practice it tends to be quite poor.
This sort of came to a head when a small child was run over and many pedestrians passed without helping.
https://en.wikipedia.org/wiki/Death_of_Wang_Yue
So I'm imagining many Chinese people might be reluctant to return a wallet in case it turns out to be some sort of scam.
https://www.theatlantic.com/china/archive/2013/06/heres-the-...