Manchester City were brought down to earth by a masterclass from Champions League holders Paris St-German at Etihad Stadium.

City – watched by former manager Pep Guardiola on his return to the club – were playing their first home game since being found guilty of breaching Premier League financial rules.

In an atmosphere of defiance from City's supporters, PSG stunned Enzo Maresca's side by powering into a three-goal lead by half-time.

Desire Doue opened the scoring in the 13th minute with a low shot past City keeper Gianluigi Donnarumma, before setting up the second with a perfect cross for Ousmane Dembele's header two minutes later.

PSG were tearing City apart, with Vitinha adding the third after 32 minutes with a clinical finish following superb link play between Maghnes Akliouche and Warren Zaire-Emery.

Maresca made three half-time substitutions and City were a team transformed after the break, creating a host of chances before Erling Haaland pulled a goal back with a flicked header from Iliman Ndiaye's cross eight minutes after the interval.

City's hopes of a comeback were stopped in their tracks after 62 minutes when Donnarumma initially saved Akliouche's shot, only for it to drop behind him into the net.

City refused to yield, Haaland getting his second and seeing another effort miraculously kept out by PSG keeper Matvei Safonov - the one final act of drama coming when Donnarumma saved Ferran Torres' late penalty.

How Manchester City's players rated

Gianluigi Donnarumma: Bad night. Should have saved Doue's opener when he was slow to get down to his right. Poor distribution for PSG's third, then a save dropped in behind him for the fourth. Saved penalty but damage done. 4

Abdukodir Khusanov: Surprise selection at right-back and it did not pay off. Tough night against Doue. Switched to the centre with the game effectively lost at 3-0. 5

Ruben Dias: Struggled as much as any City defender in the face of PSG's brilliance. Off at half-time. 5

Marc Guehi: Lost Dembele when he headed in PSG's second. Not a comfortable night for anyone in City's defence. 5

Josko Gvardiol: Missed good headed chance and had another header cleared off the line but tough task defensively. 5

Elliot Anderson: Worked hard as ever but was at times over-run by PSG's magnificent midfield. 5

Enzo Fernandez: Struggled to exert any influence or authority in midfield. Missed great headed chance and struck the woodwork after the break. 5

Antoine Semenyo: Poor first half and slightly better second. 5

Rayan Cherki: Never given a chance to produce his magic – PSG simply would not allow it. Did not make the second half. 4

Jeremy Doku: Some surging runs but could not make an impact. Substituted at half-time. 5

Erling Haaland: Tireless. Scored two and could have had more. 7

Subs:

Matheus Nunes (on 45, Dias): Little contribution other than giving away a penalty. 5

Ayyoub Bouaddi (on 45, Cherki): Some nice touches. 5

Iliman Ndiaye (on 45, Doku): Lively and created Haaland's goal. 6

Nico O'Reilly (on 90, Fernandez)

Subs not used: Bettinelli, Rulli, Kovacic, Ait-Nouri, Reis, Elias, Foden, Lewis.