A mentally ill man stabbed neighbours, a security guard and management staff in his public housing estate - killing two people - after 'the Housing Department denied his application for a flat transfer', a Court of First Instance judge was told. Li Chung-man, 43, was originally charged with murder and attempted murder. But he pleaded guilty yesterday to the alternative charges of two counts of manslaughter and three counts of wounding with intent. The stabbing spree on May 8 last year has raised controversy in the community over whether mental patients should be evicted and separated from other residents. Mrs Justice Verina Bokhary adjourned sentencing to September 1 pending two psychiatric reports. Prosecutor Peter Callaghan told the court yesterday the stabbing spree happened at 11am, when two residents of Kwai Shing Estate, Tam Yuet-shun and Lau Yun-lin, were sitting on the staircase between the sixth and seventh floors of the public flats. The pair did not know Li but had been scolded by him about a month before for speaking too loudly. On that morning, Li walked past the two women. When Lau moved her feet to make way for Li and said 'there are so many places to walk, why choose to walk through here?' Li suddenly took out a knife and stabbed Lau several times before turning to attack Tam. Lau was later declared dead. 'Feeling scared, Tam shouted for help and ran towards the fire exit. The accused rushed to her and stabbed her in the waist,' Callaghan said. Despite her injuries, Tam fled to the ground floor of the building. The prosecutor said Li later ran down to the ground floor, where he stabbed a woman security guard, Chan Siu-ling, who was on duty. 'The accused approach her, with his right hand holding a knife and said 'very funny' ... The accused immediately came at her and stabbed her right chest,' the prosecutor said. Li then went to the management office where he stabbed two other employees. Kwok Fong-kei was killed and his colleague Leung Yiu-cheung was severely injured. When police arrived at 11.35am, Li did not try to resist arrest. Under police caution, Li said: 'The Housing Department people denied my application for a flat transfer. Everyone made a monkey out of me and oppressed me.' Eighteen days after the stabbing spree, the Hospital Authority set up a review committee to look into the management and follow-up of mental patients with a history of violence. Li was represented by counsel William Stirling.