Does the 72hrs visa free only applicable to direct flight?

Stop over in Kunming for 1hr, then going to Shanghai on the same day and I will be staying in Shanghai for 24 hours. I am holding an Australian passport, does the 72hr free transit is applicable for that? I have an onward ticket to Tokyo because that's my actual destination. My airline that I booked in says 72hrs free transit policy is applicable only for direct flight to Shanghai.