The Luo Channels are based on the understanding that our emotions flow through our blood. If I don’t have the capacity to handle a particularly emotional event (young child) or simply don’t feel I have the time and resources at a given moment to do so (overly taxed adult), then my body responds by creating reservoirs of blood vessels to hold the "unwanted" emotions latent. Bottling something up, so to speak, is a survival mechanism that is useful at times, but very taxing in the long term. If money is your currency, then using it up in order to hold on to unprocessed emotions is an undesirable long term expense.
If these holdings are released, then the Blood and Qi that was being used to finance a given latency is freed up so that it can be used for our present moment awareness. Which is really the overall goal of Chinese Medicine, and philosophy. Be here now, the words of Ram Dass.
The Luo Channel mechanism is normally activated before the Divergent Channels, since they are directly connected to the Primary Channels. If a dis-ease, including an emotional holding (referred to as an Internal Pathogenic Factor) is held for a long time, or the Blood can’t manage to hold it any longer, then eventually the body’s most dense substance, it’s essence, will take on the role of financing this emotional "mortgage." At the point, the pathogen has entered the realm of the Divergent Channels.