The information provided here is not a replacement for a doctor. You shouldn't use it for the purpose of self-diagnosing or self-medicating but rather so you can have a more informed discussion with a professional TCM practitioner.
Because it is a herb specifically indicated to treat weeping sores as can be seen on Red Halloysite's page.
Its main actions are: Astringe the Large Intestine. Stop bleeding. Promote tissue regeneration and wound healing.