Vengeful Anxiang Du, 54, stabbed ex-business partner Dr Jifeng Ding, 46, after losing a bitter legal battle.
He then knifed Dr Ding’s wife Helen, 45, before searching the house and slaughtering daughters Nancy, 18, and Alice, 12.
The killings came after the pair’s Herbs For Health firm fell apart.
Northampton Crown Court heard Du faced ruin after losing £88,000 in a lawsuit against Dr Ding.
William Harbage, prosecuting, said Du travelled from Coventry to Dr Ding’s house in Northampton on April 29, 2011.
Armed with a knife, he cut down the Manchester Metropolitan University chemistry lecturer and his wife in their kitchen, the court heard.
He admits killing the family but denies four counts of murder on the grounds of diminished responsibility.
Mr Harbage disputed that yesterday, saying: “He planned to kill, he intended to kill, he did kill, four times.
“This is murder, nothing less. These killings happened when Du was angry and because he made a decision to exact his revenge on the Dings and to kill them all.”
The trial continues.
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