24 hour transit visa for Shanghai - eligible?/checked-in luggage

Hello,
we are traveling on 25th Dec from Frankfurt-Shanghai and then on to Sydney (Arrival on 26th at Shanghai 07:40 Depart for Sydney on 27th at 00:05 hrs)
we are coming back from Sydney the same way (Arrival Shanghai on 12th Jan at 05:00 hrs and depart for FRA on 13th Jan at 00:10 hrs)
We are a family of 3 (2 German passport holders, 1 Indian passport holder with German stay permit)

We would love to to visit Shanghai city during both stops since we have some good hours between flights.

My questions:
1) Do we all (whole family) qualify for the 24 hour transit visa (German and Indian nationality/German stay permit)?
2) If yes, what do we do about our checked in luggage (FRA-Shanghai flight leg and on the way back)?
Do we have to take that checked in luggage with us or will it be automatically forwarded to the respective connecting flight we have on each stop?
3) If yes, do we already have to announce upon check-in at Frankfurt/Sydney airports that we would like to have a 24 hour Transit visa?

Thanks a lot for an answer.