The bag fell from a vehicle after its owner, surnamed Liu, had an argument with an e-bike driver following a traffic incident, a witness surnamed Shi told police.
After Liu sped off, Shi, who works in a nearby factory, picked up the bag to discover 20,000 yuan ($2,857) in cash and what he suspected were packages of drugs.
Shi called police.
Moments after police arrived at the scene, Liu returned to the spot and started asking for his bag.
After officers inspected the contents of the bag, Liu was taken into custody.
Officers later identified the substances as heroin and ice.
Following an investigation, police determined Liu had contacts with known drug dealers, and was charged with drug possession.
Liu is currently awaiting trial.
This article originally appeared on the Global Times website