MANCHESTER, England - Manchester City wowed fans with a spectacular fireworks show and a highlights reel of some of its greatest hits before Wednesday's Champions League clash with Paris Saint-Germain.

It quickly went downhill from there.

In what could be interpreted as a latest display of defiance from the embattled club - which has been found guilty of widespread financial wrongdoing - City produced a slick pre-match show reminding supporters of the good times with footage of its most iconic moments on the Etihad Stadium's big screens.

On the field, however, the highlights belonged to PSG in a blistering first-half performance, which saw the back-to-back European champion race to a 3-0 lead at the break, including two goals in quick succession.

And even if City mounted a spirited second-half fightback, a 4-2 loss brought the club down to earth after the triumphalism that some found off-putting in the wake of Sunday's 3-0 Premier League victory against Liverpool.

"Against this kind of team it's already difficult when you are 0-0 and and then in two minutes you concede two goals, probably we lost a little bit of balance," City coach Enzo Maresca said. "I think we can learn many things. First of all even if we concede two goals against probably the best team in Europe in this moment, we need to continue to do the right things."

With former City manager Pep Guardiola watching on from the stands, PSG's first-half blitz sobered the atmosphere after the rousing pre-match show.

Desire Doue, Ousmane Dembele and Vitinha all scored and the defending champion created numerous other chances to extend its lead.

This was City's first home game since an independent panel found that it broke Premier League rules by artificially inflating its revenue by more than $1 billion over nearly a decade on its way to dominating English soccer.

City has appealed, leaving an air of uncertainty over the club's future and the season as a whole, with potential punishments including a huge fine, points deductions or even expulsion from England's top flight.

The Emirati-owned City has always pleaded its innocence and along with its fans has been resolute in its determination to clear its name.

This was the first chance to put on a show of solidarity at its home stadium since the verdict.

A huge banner was hung with the words: "I know I am, I'm sure I am, I'm City til I die".

The highlight reel included Sergio Aguero's famous title-winning goal in 2012 as well as other moments predating the Abu Dhabi takeover in 2008.

In the stands, Guardiola - on his first return to the club since stepping down at the end of last season - sat behind club chief executive Ferran Soriano.

Despite the verdict, City has refused to be bowed and the win against Liverpool was evidence its players could put the outside noise to one side and focus on the field.

PSG, however, was different story.

Another club that has benefited wildly from investment from the Middle East through its Qatari backers, the French giant has built the finest team in Europe and lived up to that billing by sweeping City aside in the first half.

It was the type of performance to suggest it is capable of a Champions League three-peat, emulating the all-time king of Europe Real Madrid.

At the break it felt like City could be on the end of a humbling defeat.

However, Enzo Maresca's team managed to turn a would-be rout into a thrilling clash.

Erling Haaland scored two goals, two efforts came back off the woodwork and another chance was cleared off the line.

Maghnes Akliouche's goal, in between Haaland's, effectively ensured there would be no comeback and Ferran Torres then failed to score a fifth for the visitors from the penalty spot.

"It's not important to be the best in the competition now, it's important to be the best in the final," PSG coach Luis Enrique said.