Hi Neil,
I suspect the main use of the rings was for storage and transport. Weapons could be carried on poles or suspended by hooks on a wall, and the blade wouldn't get dull. On knives, it also makes a useful loop for pulling a blade out of a sheath, or a thumb ring. Still, the ring hilt is most common on military weapons, and I think it mostly for transport and storage. If you look at civilian daos and jian, they don't have the ring so often.
Best,
F
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